Interest Rates and Fees

Current Interest Rates

The Bipartisan Student Loan Certainty Act of 2013 amends the Direct Loan interest rate section of the Higher Education Act of 1965, as amended (the HEA). Direct Loans include: Direct subsidized/unsubsidized loans, Parent and Grad PLUS, and Consolidation loans. This law pegs Direct Student Loan interest rates to the 10-Year Treasury Note index. New Direct Loan rates will be set each July 1st for new loans taken out in that year.

Federal Direct Student Loans 2017-2018 Interest RatesEffective for Loans With a First Disbursement between July 1, 2017 and June 30, 2018

LoanType

StudentGrade Level

10-Year Treasury Note Index

Add-On

2017-2018 Fixed Rate

Subsidized Loans

Undergraduates

2.40%

2.05%

4.45%

Unsubsidized Loans

Undergraduates

2.40%

2.05%

4.45%

Unsubsidized Loans

Graduate Students

2.40%

3.60%

6.00%

Direct PLUS Loans

Parents of Dependent Undergraduates and Graduate Students

2.40%

4.60%

7.00%

Direct Consolidation Loans

N/A

Interest rate remains the weighted average of the interest rates of the loans included in the consolidation, rounded up to the next higher one-eighth of one percent. New law removes the 8.25% cap.

Federal Perkins Loans 2015-2016 Interest Rates

Perkins Loans

Undergraduate and Graduate

n/a

n/a

5.0%

Historical Interest Rates

The College Cost Reduction and Access Act of 2007 reduced the interest rates on subsidized Stafford Direct loans for undergraduate students starting July 1, 2008. These reductions were available only to undergraduate students for only subsidized Direct loans, not unsubsidized Stafford loans.

All federal student loan interest rates from 2007 through 2016 are listed in the chart below.

Federal Student Loans Rates: 2007 through 2016All rates are fixed

LoanType

StudentGrade Level

2016-17

2015-16

2014-15

2013-14

2012-13

2011-12

2010-11

2009-10

2008-09

Subsidized Loans

Undergraduates

3.76%

4.29%

4.66%

3.86%

3.4%

3.4%

4.5%

5.6%

6.0%

Subsidized Loans

Graduate Students

n/a

n/a

n/a

n/a

n/a

n/a

6.8%

6.8%

6.8%

Unsubsidized Loans

Undergraduates

3.76%

4.29%

4.66%

3.86%

6.8%

6.8%

6.8%

6.8%

6.8%

Unsubsidized Loans

Graduate Students

5.31%

5.84%

6.21%

5.41%

6.8%

6.8%

6.8%

6.8%

6.8%

PLUS Loans

Parents of Dependent Undergraduates and Graduate/Professional Students

6.31%

6.84%

7.21%

6.41%

7.9%

7.9%

8.5%

8.5%

8.5%

Consolidation Loans

Interest rate is the weighted average of the interest rates of the loans included in the consolidation, rounded up to the next higher one-eighth of one percent, capped at 8.25%.

Federal Perkins Loans 2013-2014 Interest Rates

Perkins Loans

Undergraduate and Graduate

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

Additional Loan Fees (origination fees)

Most federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You're responsible for repaying the entire amount you borrowed and not just the amount you received.

The chart below shows the loan fees for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after Dec. 1, 2013. There are no loan fees on Perkins Loans.